Marketers continue to bet on TV for mass reach, digital for customer engagement

As per GroupM’s annual estimated advertising expenditure report, ‘This Year, Next Year’ 2014, the projected AdEx growth is estimated at 11.6 per cent. Digital media shows the maximum growth with 35 per cent. This is followed by 12 per cent in TV, a drop from 13.6 per cent in 2013. The print medium shows a significant increase by 8.5 per cent as against the 2013 estimate of 4.6 per cent, owing to growth in vernacular print publications across the country. The report also highlights that the future trends in each medium will play a key role in deciding ad spends, such as Augmented Reality, HD feeds, Smart Boxes, video streaming, online radio, and so on.

Market reaction
We asked some marketers their opinions on the future of AdEx on television and digital.

FMCG, auto and retail will be among the prime spenders on media platforms. Media planners we spoke to have also indicated that e-commerce and telecom will also invest heavily on broadcasting. Vodafone has already tied up with Star Sports to enhance mobile internet experience. Additionally, BFSI and Technology sector will also enhance media spends.

Commenting on the insurance sector, Sanjay Tripathi, Head Marketing, Products and Direct Channels, HDFC Life said “The overall AdEx is projected at 11.6 per cent in the report. So, if I had spent Rs 100 last year, this year I would spend around Rs 112. Out of this, for instance, if I allocated Rs 45 to TV last year, this year it might be Rs 44 and Re 1 might go to digital. Therefore, as far as the BFSI sector is concerned, there will be no cutting on spends on TV. In fact, the bulk of increase in AdEx will go to TV and digital in our sector.”

Marketers generally take their overall target group (including the core) into consideration while allocating budgets and television continues to be a dominant mass medium as far as reach and impact is concerned. However, all the marketers we spoke to unanimously agree that improving technology and interface among the mediums is likely to benefit interactive platforms, which will be a convergence of TV and Digital. Augmented reality medium will also be another medium to bet upon in the digital age.

The automobile industry has been in the news recently with many brands launching new models and variants. Nitish Tipnis, Director, Sales and Marketing, Nissan India said, “We do see an uptrend in ad spends this year. There are two reasons for that. Firstly, I do see a slump in the next six months, so there will be practical spends. Secondly, there are new launches happening in the sector.We would enhance our digital spends for Nissan. This year, digital spends will be growing at the cost of the print and not TV.”

FMCG advertisers also feel that that for engagement and one-on one interaction the digital medium would be apreferred option, whereas TV would be in any case a mass medium.

Sunil Gadgil, CMO, Nivea India said, “Digital is becoming important for developing categories like ours, but TV will continue to be a mass reach medium. Digital will address the narrow funnels which people look for, while TV will help spread a message. As expressed in the report, digital will gain the most this year, but it would also depend upon the category being advertised.”

Shirish Joshi, COO, Strategic Marketing Group, Godrej said, “Our approach will be pragmatic. The relative share of digital on the national platform is still low; therefore, digital will grow at a fast pace. But TV remains the mass medium and therefore the fundamental objective will play a key role in deciding the future. The overall ad spend will increase. It doesn’t matter digital gains over which mediums.”

Anil Kumar Sathiraju, AVP and Head, South, DDB Mudra Max noted, “There should be a surge in spends from sectors such as e-commerce and auto, as the avenues look bright for both the sectors.”

Observers also indicate that despite the doomed ratings scenario and speculation over the measurement mechanism, television will continue to be the dominant medium. Television brands are now getting into the digital mediums with their own feeds. Even augmented reality and consumer interfaces are being inundated by various media.